While the low volume and tight range made for boring action, the price pattern appears to have completed a 4th wave (subminuette) at today's low. We should see higher prices tomorrow as we complete a 5th wave of an extended larger wave. The degree of trend of this larger wave is key to what happens in the market next.
If this next wave completes
- Minute wave C / Minor wave Y / Primary wave 2, then....look out below!
- Minuette wave 1, then...look for a minuette wave 2 to hold in the 1110/1115 area
Of course you already know that I favor the first scenario. Time will tell us as key support levels will hold or get blown out of the water.
On the upside: 5th wave target starts at 1131, with 1133 and 1136 also acting as key resistance.
On the downside: 1120 should signal that our wave is over. Look for key support at 1110/1115 to hold if the market is going to stay together. 1094 is the key pivot to signal a change in trend from up to down.
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